Mushroom farming is a highly worthwhile agri business Idea with minimum investment. whether small scale or huge scale it requires a managed environment fundamental substances and proper cultivation strategies. 

Profitable Mushroom Farming Business Report 2025 : Everything You Need to Know

This guide provides step by step info on putting in place a mushroom farm funding requirements production methods and advertising techniques to maximise income.

Mushroom farming Project Report. Here is the Complete details on starting a mushroom farming business. (What is required to set up a mushroom farm?) Full details to start a mushroom farming business 

  • Required space 10*10 room or hut.
  • Mushroom seeds.
  • Polythene bag
  • Straw [Nellam Pul – dried]
  • Water at least 100 liters / day.
  • Chemical to kill germs in the straw [Formolin Bevistin]

For more details call 956354046.

This business is like a vegetable farming the investment can be started with Rs. 1000. The investment varies depending on how many beds we make. The cost of making a mushroom bed is Rs. 30 to Rs. 40.

Mushroom bed [A pillow like structure made of straw for mushroom growth]

Full details of starting a mushroom farming business

Investment:

Minimum investment for mushroom farming is Rs. 15000

Method:

There are two methods for processing straw: First the germs in the straw must be cleaned. There are two methods for that. (Method 1 for killing germs)

  • Boiling water method (Method 2 for killing germs)
  • Chemical processing method.

Full details of starting a mushroom farming business

Method 1 : Boiling water method (This is for smallscale mushroom production)

The welldried straw should be cut into small pieces using a straw cutting machine. Then soak it for about 8 hours. Boil it in boiling water for ten minutes. This will kill the disease causing germs in the straw. This is the first method.

Method 2 : Chemical processing method. (This is for largescale mushroom production)

The welldried straw should be cut into small pieces using a straw cutting machine. Then soak it for about 8 hours. Next soak the straw in a mixture of 100 liters of water 150 milliliters of formalin and 3 grams of carbondi jam powder for about 8 hours. This will kill the diseasecausing germs in the straw.

This is the second method.Full details of starting a mushroom farming business  Use one of the two methods mentioned above to kill the germs in the straw. After this filter the water and dry it.

There should be some moisture (i.e. 60%) so that it feels wet when you hold it in your hand. Then fill a 12 to 24 size polythene bag with straw to a depth of 5 cm. Then take 20 grams of mushroom seeds and sprinkle them on the filled straw.

7 to 8 layers should be laid in this way alternately. Then 3 holes should be made on each side making 12 holes on all four sides. After this a coconut leaf woven hut should be tied in the center and water should be sprinkled on the sand on the ground every day.

On the 10th day of spraying the mushroom seeds should sprout white. Then on the 27th day mushroom buds should appear from it. This should be harvested and sold in 3 days.

Production and selling price of one kilo of mushrooms Mushroom production price

Profitable Mushroom Farming Business Report 2025 : Everything You Need to Know

The production cost of one kilo of mushrooms is a maximum of Rs. 30 to 40 Per KG.

Mushroom selling price of One kilo of mushrooms can be sold for Rs. 90 to Rs. 100 for wholesale sale. [ Profit: Rs.60 ] [ Profit: Rs. 170 Per Wholesale price ]

Bud mushroom farming

  • Mushroom seeds sample 1 kg
  • Recipe CD/book
  • Mushroom bed polythene covers 5.

You can get it at home by paying the postman for Rs. 250. If you need it send your address to Farmers. You can take training at whichever of the above farms is closest to you. What you need to know in the training

1) How to sow mushroom seeds?

2) How to spray water?

3) Symptoms of infection in the mushroom bed?

4) How to prevent infection?

5) How to prevent the spread of the existing infection?

6) What medicines are used to control the infection?

7) How much and when to use medicines and chemicals?

8) How to sell the produced mushrooms with added value (mushroom pops mushroom biryani mushroom soup mushroom chili mushroom pakoda mushroom fry)?

9) What are the methods of selling the produced mushrooms?

Profit Analysis:

  • The cost required to make a mushroom bed (1224 inches) is Rs. 40 [1. Polythene bag 2. Straw 3. Mushroom seeds 4. Including workers’ wages].
  • Amount of mushrooms available in that mushroom bag is 1.5 kg to 2 kg [This mushroom is available in three to four harvests]
  • First harvest on the 28th day.. next harvest at intervals of 2 or 3 days

Profit we get in one mushroom bag:

The cost of making one mushroom bag / bed is Rs.40 

  • Rs.200 – [When selling at wholesale price] 
  • Rs.300 – [When selling as a shop] 
  • Rs.400 – [When setting up a retail outlet and selling] .

The produced mushrooms can be sold in three ways.

  • Selling at wholesale price.
  • Going to a shop and selling.
  • Setting up a retail outlet.

Selling at wholesale price

When selling at wholesale price we sell our excess production (more than 10/20 kg per day) to a wholesaler or door-to-door seller.

The wholesale price of a 200 gram packet that we sell in this way is Rs.24.

The profit we get is Rs.8 per 200 gram packet.

production cost of a 200 gram packet is Rs.4. 1.5)

Profit in wholesale = Rs.24-Rs.4=Rs.20. 1.6) When we sell at wholesale price the profit we get per kilo of mushroom is Rs.100.

Selling at shop by Shop

Profitable Mushroom Farming Business Report 2025 : Everything You Need to Know
  • It is best to sell mushrooms in this way. In this way you do not need to approach each shop first and ask if you want mushrooms? Do you want mushrooms?
  • First you select 50 to 100 grocery stores pharmacies and medical stores that have refrigerators and take a color print (with a picture of a mushroom) saying “You can get mushrooms here” and paste it in 2 or 3 places so that people who come to the store can see it.
  • After pasting it in this way at least one person will ask for a mushroom packet for every 50 to 100 customers in a store every day. Even if it is 1 packet per store per day 100 packets can be easily sold per 100 stores per day. (The shopkeeper will give a packet to the store at a price of Rs. 35 and sell that 200 gram packet at a price of Rs. 45/50)
  • After a week of printing and pasting it in this way approach those stores you will definitely get orders.
  • When you sell mushrooms yourself or a person the profit you get per packet is Rs. 30.
  • cost of production of a 200 gram packet is Rs. 4 selling Rs. 35 profit per packet = Rs. 35 – Rs. 4 =  Rs. 31
  • When we sell it as a shop the profit you get per kilo is Rs. 150.

Setting up a retail outlet.

Profitable Mushroom Farming Business Report 2025 : Everything You Need to Know

Rent a small room in your town/nearby city get a fridge a female employee at a salary of Rs. 3500 put a big banner above the shop saying “Mushrooms are available here special orders will be supplied” with a big banner with a picture of mushrooms you can easily sell 30 to 50 packets per day.

If the shop rent is too high for you you can ask them to sell it in a fridge in another existing shop. 3.3) In this way when we sell mushrooms at retail price the profit we get per kg is Rs. 200.

Sales strategies:

  • strategy 1) Approach the cooking masters living in your town/nearby city and insist them to cook mushroom biryani instead of vegetable/vegetable biryani on four or five occasions in a month. You can give a small amount as commission to the cooking masters. Through this you can easily sell 20 to 30 kg per week.
  • strategy 2) You can easily get the mobile number of the special householders a week in advance at the place where the special newspaper is printed and contact them directly and sell mushrooms at wholesale price.
  • strategy 3)Nowadays people have started eating mushroom pubs more and more instead of vegetable pubs in the market!. you can buy them and sell mushrooms at wholesale prices.
  • strategy 4)They cook mushrooms in a pushcart at the bus stand in your town and sell them there at wholesale prices.
  • strategy 5)Nowadays many places sell vegetable samosas. you can introduce mushroom samosas there and sell mushrooms at wholesale prices.
  • strategy 6)Nowadays many places sell chicken/mutton soup.. you can introduce mushroom soup there and sell mushrooms at wholesale prices.
  • strategy 7)There must be a daily market in your town/nearby city.. you can hire a person there and sell them at retail price (Rs.45/Rs.50) or at wholesale price (Rs.35/Rs.40) to the shopkeeper.
  • strategy 8) Mushroom biryani can be introduced in existing vegetarian/non-vegetarian hotels.

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